Morgan Stanley expects revenue from artificial intelligence (AI) software to increase by 580% over the next three years.
Mongodb's is a leader in database management systems, and its document-oriented databases are suitable for AI application development.
OKTA is a leader in identity and access management, and the company recently introduced threat protection tools powered by AI.
10 shares I like more than mongodb
Artificial intelligence (AI) is quickly woven into everyday life. According to Goldman Sachs9.2% of US companies currently use AI to produce products and services. This is twice the percentage of technology used at the same time last year. However, the market is still in its early stages.
Morgan Stanley AI software revenues will increase by 580% over the next three years, exceeding $400 billion in 2028. Palantir The stock price is under a sharp valuation as it is in a good position to make a profit. Investors should consider such a more reasonable priced stock mongodb(NASDAQ: MDB) and Octa(NASDAQ: OKTA).
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Databases are used to store, manage and retrieve application data. MongoDB's document database handles structured and unstructured data. This distinguishes itself from traditional relational databases designed solely for structured data. For more details, structured data fits nicely into rows and columns, but not unstructured data (images, videos, text, etc.)
The flexibility of the document model means that MongoDB is particularly suitable for content management systems, e-commerce platforms, and artificial intelligence (AI) applications. Earlier this year, Mongodb resorted to AI opportunities by acquiring Voyage AI, a company that develops embedded and re-ranking models that improve the accuracy of AI applications.
CEO Dev Ittycheria told analysts: “When AI redefines how applications are built and how businesses operate, MongoDB is positioned very well. Real-world applications need high quality, context-rich, and often unstructured data to provide reliable output.”
MongoDB's document model is also suitable for real-time analytics applications. It is often used to personalize customer experiences across the Internet. consulting Gartner Recently, I ranked Mongodb as a leader in database management systems, mentioning support for artificial intelligence and real-time analytics.
MongoDB shares are currently trading at 49 times their adjusted earnings. It's not cheap, but this rating is reasonable for companies that have increased 96% in revenue adjusted in the most recent quarter. Additionally, stocks trade with 7.4 times sales, with a material discount of up to an average of 9.5 times sales per year and an average of 13.4 times sales over three years.
OKTA is a cybersecurity company that develops ID and Access Management (IAM) software. The platform allows administrators to enforce contextual access policies that define which users and devices can connect to which applications and resources. It leans towards AI, gain risk with each login and authenticates your account (including AI agents) based on criteria such as identity, location, and behavior.
Importantly, OKTA recently introduced a new product called Identity Threat Protection, an AI-driven tool that measures session risk. For further details, login risk is calculated only once during the authentication phase, but session risk is determined continuously by analyzing all post-request requests.
Okta has multiple tailwinds in the back. First, cybersecurity is a budgetary expense that is free from discrimination, as businesses cannot afford to suffer data breaches. Second, identity-based attacks account for 30% of cybersecurity incidents, and the identity market is projected to grow at 12.6% each year until 2030, as AI creates new threats. Third, industry analysts have recently ranked OKTA as a leader in employee identity (for employees) and customer identity.
OKTA stocks are currently trading at 33 times their adjusted earnings. This is very reasonable for companies that have increased 32% in their adjusted revenues in the most recent quarter. Additionally, the stock is currently trading at 6.6 times the sales, trading along an average of 6.5 times the sales over the three years. Shares fell after a recent earnings report as management provided careful guidance. Patient investors should lean towards the opportunity.
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Trevor Jennewine has the position of Palantir Technologies. Motley Fool has positions in Goldman Sachs Group, Mongodb, Okta and Palantir Technologies and recommends. Motley's fool recommends Gartner. Motley Fools have a disclosure policy.
AI (AI) software sales could skyrocket 580%: 2 AI stocks buy now (hint: not Palantir) was originally published by Motley Fool
